Payment of inheritance tax and estate duties

Rates in the Walloon Region

• What are the rates between spouses, legal cohabitants and lineal relatives (between grandparents, parents, children, grandchildren, ...)?

  The rates apply to the individual share inherited by each heir, after deduction of any expenses and debts.

  Bracket (in euro)	Rate (in %)	Total tax on previous brackets (in euro)
  0.01 to 12500	3	/
  12500.01 to 25000	4	375
  25000.01 to 50000	5	875
  50000.01 to 100000	7	2,125
  100000.01 to 150000	10	5,625
  150000.01 to 200000	14	10,625
  200000.01 to 250000	18	17,625
  250000.01 to 500000	24	26,625
  500,000.01 and more	30	86,625

  Under certain circumstances, these rates also apply to adopted children.

• What are the rates between brothers and sisters?

  The rates apply to the individual share inherited by each heir, after deduction of any expenses and debts.

  Bracket (in euro)	Rate (in %)	Total tax on previous brackets (in euro)
  0.01 to 12500	20	/
  12500.01 to 25000	25	2,500
  25000.01 to 75000	35	5,625
  75000.01 to 175000	50	23,125
  175,000.01 and more	65	73,125

• What are the rates between uncles, aunts, nephews and nieces?

  The rates apply to the individual share inherited by each heir, after deduction of any expenses and debts.

  Bracket (in euro)	Rate (in %)	Total tax on previous brackets (in euro)
  0.01 to 12500	25	/
  12500.01 to 25000	30	3,125
  25000.01 to 75000	40	6,875
  75000.01 to 175000	55	26,875
  175,000.01 and more	70	81,875

• What are the rates between other persons?

  The rates apply to the individual share inherited by each heir, after deduction of any expenses and debts.

  Bracket (in euro)	Rate (in %)	Total tax on previous brackets (in euro)
  0.01 to 12500	30	/
  12500.01 to 25000	35	3,750
  25000.01 to 75000	60	8,125
  75000.01 to 175000	80	38,125
  175,000.01 and more	80	118,125

• Spouses and legally cohabiting partners: exemption for the family home

  The surviving spouse or legal cohabitant is granted a full exemption on the net share of immovable property that served as the main residence of the deceased for at least five years on the date of death.

  That net share is excluded from the tax base.

  Conditions

  • These persons must be the surviving spouse or surviving legal cohabitant, regardless of the degree of consanguinity of the latter with the deceased.
  • The deceased can be a resident or a non-resident of the Kingdom.
  • The immovable property must be located in the Walloon region.
  • An extract from the population register or the register of foreign nationals will provide proof of the main residence, unless otherwise indicated.
  • This can be the last common residence of the spouses or legal cohabitants if they ceased to cohabit as a result of separation or force majeure or for compelling medical, family, social or professional reasons.

  Application

  The full exemption is usually granted automatically, but you must apply for it expressly in the declaration of estate if you ceased to cohabit as a result of separation or for compelling reasons. In that case, you must provide proof of the force majeure or compelling reasons.

• Lineal heirs: reduced rate for the family home

  A reduced rate applies to the net share of lineal heirs in the family home.

  Bracket (in euro)	Rate (in %)	Total tax on previous brackets (in euro)
  0.01 to 25000	1	/
  25000.01 to 50000	2	250
  50000.01 to 175000	5	750
  175000.01 to 250000	12	7,000
  250000.01 to 500000	24	16,000
  500,000.01 and more	30	76,000

  Application

  You must explicitly request the reduced rate in the declaration of estate.

• Spouses, legal cohabitants and lineal relatives: partial exemption from inheritance tax

  Tax-free allowance

  The first 12,500 euros of the net share of spouses, legal cohabitants or lineal heirs in the estate is exempt from tax.

  If the net share is 125,000 euros or less, they receive an additional exemption of 12,500 euros in the second bracket, amounting to a total exemption of 25,000 euros.

  Additional tax-free allowance for children under the age of 21

  Children of the deceased person who are under the age of 21 receive an additional exemption of 2,500 euros for each full year remaining until they are 21.

  In addition to this, the spouse or legal cohabitant receives half of the additional exemption paid to all of the common children together.

  Example of the tax-free allowance for a child under the age of 21

  Dirk De Smet dies leaving his daughter Hilde as his heir. Hilde is 17 years and 6 months old.

  After deducting funeral costs and Dirk’s debts, the value of the estate is 150,000 euros.

  Hilde is entitled to the following exemptions:

  • a tax-free sum of 12,500 euros and
  • an additional tax-free sum of 2,500 euros x 3 (= full years until she is 21) = 7,500 euros.

  That is a total amount of 20,000 euros tax-free.

  The inheritance tax payable by Hilde is calculated as follows:

  • 20,000 euros is exempt
  • 5,000 euros at 4 % = 200 euros
  • 25,000 euros at 5 % = 1,250 euros
  • 50,000 euros at 7% = 3,500 euros
  • 50,000 euros at 10 % = 5,000 euros

  Therefore, the total amount is 9,950 euros.

• Heirs with at least three children under the age of 21: inheritance tax reduction

  Heirs with at least three living children under the age of 21 at the time of the deceased person's death receive a 2 % reduction in inheritance tax for each of those children, up to a maximum of 62 euros per child.

  The deceased person's partner receives a 4 % reduction for each child under 21, up to a maximum of 124 euros per child.

• Property that is included in the estate of another deceased person within a year: 50 % inheritance tax reduction

  If the inherited property is included in the estate of one or more other deceased persons within a year of the deceased person’s death, the inheritance tax due on it is halved.

  However, the amount of the reduction must not exceed the inheritance tax levied on the previous estate.

• Testamentary gifts to authorities: inheritance tax exemptions and reductions

  There is an exemption from inheritance tax for legacies (testamentary gifts) to:

  • the Walloon Region
  • the French Community, the Brussels Capital Region, the Brussels Agglomeration; the Common, French and Flemish Community Commissions; the German-Speaking Community, the Flemish Region and the Flemish Community;
  • entities comparable to the above, that were established under, and are subject to, the laws of another Member State of the European Economic Area;
  • a Federal State and a Member State of the European Economic Area;
  • legal entities established by the above entities.

  There is a reduced rate of 5.5 % for legacies to:

  • the provinces;
  • the municipalities;
  • provincial and municipal public bodies;
  • inter-communal associations;
  • autonomous municipal companies;
  • legal entities of another Member State of the European Economic Area comparable to the entities listed above;
  • companies recognised by the ‘Société wallonne du Logement’ (Waalse Huisvestingsmaatschappij) [Walloon Housing Company];
  • the ‘Fonds du Logement des Familles nombreuses de Wallonie’ (Woningfonds van de Kroostrijke Gezinnen van Wallonië) [The Walloon Social Housing Fund];
  • the social entities referred to in Article 191 of the Walloon Housing Code, which are recognised by the Walloon Government as social housing agencies, social community networks or associations for the promotion of housing.

  There is a reduced rate of 7 % for legacies to:

  • national and international not-for-profit organisations;
  • friendly societies or national unions of friendly societies;
  • professional associations;
  • private foundations
  • public-interest foundations.

• Property in Natura 2000 areas/forests: exemption from inheritance tax

  There is an exemption from inheritance tax for immovable property in Natura 2000 areas. These are valuable nature conservation areas which are listed in the Belgian Official Gazette.

  Under certain circumstances, the tax can be reduced for immovable property in an area that is eligible for inclusion in the Natura 2000 network and subject to the primary protection regime.

  Additional exemptions can also be granted for:

  • the value of the trees growing in the forests and woods specified in the Forestry Code and
  • the value of the shares and equivalent interests of a forest management group referred to in the Law of 6 May 1999 promoting the establishment of civil forest management group companies (in Dutch/French/German).

  Application

  You must apply for the exemption in the declaration of estate. You should contact your civil-law notary or the competent office of the FPS Finance to obtain specific information about the process.

• Spouses, legal cohabitants and lineal heirs: exemption for death caused by an extraordinary act of violence

  There is an exemption from inheritance tax of 250,000 euros for death caused by an extraordinary act of violence.

  An extraordinary act of violence is defined as ‘any intentional act of violence committed by a single person or a group of persons, which caused a feeling of fear and insecurity among the general public on account both of the violence itself and the seriousness of its consequences, and of the attack on the physical and/or moral integrity of the members of the public present when the act was committed.’

  The following heirs are eligible:

  • spouses or legal cohabitants;
  • lineal heirs;
  • collateral heirs up to the second degree (and their blood relatives in the direct line of descent up to the first degree)

  Application

  Attach a certificate from the ‘Direction générale opérationnelle Fiscalité’ (Operationeel Directoraat-generaal Fiscaliteit) [Operational Directorate General for Tax] of the Walloon Administration, confirming that the deceased person died as a result of an extraordinary act of violence, to the declaration of estate.

  You can contact the Walloon Tax Administration for more information about the certificate.

• Protected immovable property: exemption from inheritance tax for maintenance work

  Heirs who inherit the ownership or usufruct of protected monuments may obtain an inheritance tax exemption. An amount equivalent to the exemption must be invested in the monument.

  The following heirs are eligible:

  • spouses or legal cohabitants;
  • lineal heirs;
  • collateral heirs up to the third degree.

  Conditions

  • You must invest an amount equal to the inheritance tax exemption in maintenance, surveys and renovation of the protected monument within ten years of the date of the deceased person’s death.
  • Once you have completed the investments, you must obtain a certificate from the Walloon Government confirming that the amount of the investments was at least equal to the amount of the inheritance tax exemption.
  • All of the heirs must retain their right of ownership or usufruct over the monument until the certificate has been obtained. However, the exemption will still apply if the ownership or usufruct changes as a result of a death or a transfer between spouses, legal cohabitants, lineal relatives or collateral relatives up to the third degree.

  Important: if this condition is not met, all of the heirs who received the exemption must pay inheritance tax, unless this was a result of force majeure or for compelling administrative reasons.

  Application

  Apply for the exemption in the declaration of estate (it is not automatic).

  State the date and the decision by which the immovable property was protected and attach a copy of the decision.

  Attach a list of the investments required to the declaration. You can obtain the list from the Walloon Government (please note: the Walloon Government needs at least 45 days to provide the list).

• Transfer of businesses: reduced inheritance tax rate (0 %)

  In some cases and under certain conditions, inheritance tax on the net share of a business can be reduced to 0 %, if the succession or the matrimonial property regime contains a right in rem resulting from the death.

  To obtain information about your specific situation, you should contact your civil-law notary or the competent office of the FPS Finance.

• Undeveloped immovable property with a long-term lease or career-long lease: reduced rate applicable since 1 January 2021

  Inheritance tax on undeveloped immovable property in the Walloon Region with a long-term or career-long lease can be reduced under certain circumstances.

  Long-term lease

  The reduction is:

  • 55 % on the first 4 hectares;
  • 30 % on the remaining hectares.

  Career-long lease

  The reduction is:

  • 75 % on the first 4 hectares;
  • 50 % on the remaining hectares.

  The reduction for the long-term or career-long lease is 10 % lower if the lessee was over 35 years of age when the lease was entered into.

  The lease must be:

  • reported to the ‘Observatoire foncier’ (Grondwaarnemingscentrum) [Land Survey Centre] and
  • entered into by an official document in accordance with the rules governing leases in the Civil Code.

Rates in the Brussels Capital Region

• What are the rates between spouses, cohabitants and lineal relatives (between grandparents, parents, children, grandchildren, ...)?

  The rates apply to the individual share inherited by each heir, after deduction of any expenses and debts.

  Bracket (in euro)	Rate (in %)	Total tax on previous brackets (in euro)
  0.01 to 50000	3	/
  50000.01 to 100000	8	1,500
  100000.01 to 175000	9	5,500
  175000.01 to 250000	18	12,250
  250000.01 to 500000	24	25,750
  500,000.01 and more	30	85,750

  The rates also apply to stepchildren, stepparents and adopted children. However, they must be able to prove that they meet the necessary conditions.

  Stepchild and stepparent

  A stepchild is defined as:

  • the child of the deceased person’s spouse or legal cohabitant;
  • the child of a deceased person’s partner, on condition that the relationship between the partners was still extant at the time of death;
  • a person who is not a descendent of the deceased person but who, at the time of that person’s death, had lived in his or her household for a continuous period of at least one year and, during that time, had received the assistance and care that children normally receive from their parents primarily from one or more persons (the deceased person, his or her partner, the deceased person and his or her partner, the deceased person and other persons, or the deceased person’s partner and other persons).

  A stepparent is a person who has given the deceased the assistance and care referred to in the previous paragraph.

  Adopted child

  This is a child adopted under the system of full or simple adoption.

  Additional conditions apply to simple adoption: One of the following conditions must be met:

  • The adopted child must, up to the age of 21, for a continuous period of three years, have received the assistance and care that children normally receive from their parents from the adoptive parent or the adoptive parent and his or her partner.
  • The adopted child must be a child of the adoptive parent’s spouse.
  • At the time of the adoption, the child must have been the child of a father or mother who died in Belgium or must have been in the care of social services or a public social welfare centre or a comparable institution in the European Economic Area
  • The adopted child must have been adopted by a person whose descendants have all died for Belgium.

• What are the rates between brothers and sisters?

  The rates apply to the individual share inherited by each heir, after deduction of any expenses and debts.

  Bracket (in euro)	Rate (in %)	Total tax on previous brackets (in euro)
  0.01 to 12500	20	/
  12500.01 to 25000	25	2,500
  25000.01 to 50000	30	5,625
  50000.01 to 100000	40	13,125
  100000.01 to 175000	55	33,125
  175000.01 to 250000	60	74,375
  250,000.01 and more	65	119,375

• What are the rates between uncles, aunts, nephews and nieces?

  The inheritance tax rates are calculated on the combined shares of all of these heirs. Each heir then pays an amount of tax proportionate to his or her share of the inheritance.

  Bracket (in euro)	Rate (in %)	Total tax on previous brackets (in euro)
  0.01 to 50000	35	/
  50000.01 to 100000	50	17,500
  100000.01 to 175000	60	42,500
  175,000.01 and more	70	87,500

• What are the rates between other persons?

  The inheritance tax rates are calculated on the combined shares of all of these heirs. Each heir then pays an amount of tax proportionate to his or her share of the inheritance.

  Bracket (in euro)	Rate (in %)	Total tax on previous brackets (in euro)
  0.01 to 50000	40	/
  50000.01 to 75000	55	20,000
  75000.01 to 175000	65	33,750
  175,000.01 and more	80	98,750

• Spouses and legally cohabiting partners: exemption for the family home

  The spouse or legally cohabiting partner does not have to pay inheritance tax or duty on the transfer of property mortis causa on his or her net share of the property that was the family home at the time of the deceased person’s death.

  There is also an exemption for the last property used as a family home if the spouses or cohabiting partners are no longer living together at the time of death as a result of:

  • actual separation of the partners or
  • force majeure lasting until the time of death.

  Please note: this exemption does not apply if the legally cohabiting partner is:

  • a lineal blood relative (grandparent, parent, child, grandchild, etc.) of the deceased or a beneficiary treated as a lineal blood relative for the purposes of applying the rate;
  • a brother, sister, nephew, niece, uncle or aunt of the deceased.

  Application

  • If you were living with the deceased person at the time of his or her death, the exemption is normally applied automatically.
  • If you were no longer living together as a result of force majeure, you must apply for the exemption in the declaration of estate. In that case you must also provide proof of the force majeure.

• Cohabitants and lineal relatives: reduced rate for the main residence

  A reduced rate can be applied to cohabitants or lineal heirs (children, grandchildren, parents, grandparents, etc.) if the estate includes a fully owned part of a building in which the deceased person had his or her main residence for at least five years.

  The preferential rate applies up to a maximum of 250,000 euros. The standard rate applies to any amount over this.

  Therefore, the following rates apply to that part of the main residence:

  Bracket (in euro)	Rate (in %)	Total tax on previous brackets (in euro)
  0.01 to 50000	2	/
  50000.01 to 100000	5.3	1,000
  100000.01 to 175000	6	3,650
  175000.01 to 250000	12	8,150
  250000.01 to 500000	24	17,150
  500,000.01 and more	30	77,150

  Notes:

  • You can prove that the building concerned was the main residence of the deceased with an extract from the population register or the foreign nationals register.
  • The preferential rate still applies if the deceased was unable to retain his or her main residence as a result of force majeure.

  Application

  • If you were living with the deceased person at the time of his or her death, the exemption is normally applied automatically.
  • If you were no longer living together as a result of force majeure, you must apply for the exemption in the declaration of estate. In that case you must also provide proof of the force majeure.

• Spouses, cohabiting partners and lineal relatives: partial exemption from inheritance tax

  Tax-free allowance

  Spouses, cohabiting partners or lineal heirs do not have to pay inheritance tax on the first 15,000 euros of their inheritance. The reduction does not apply to the share received by a grandchild alone as legatee.

  Additional tax-free allowance for children under the age of 21

  Children of the deceased person who are under the age of 21 receive an additional exemption of 2,500 euros for each full year remaining until they are 21.

  In addition to this, the spouse or legal cohabitant receives half of the additional exemption paid to all of the common children together.

  Example of the tax-free allowance for a child under the age of 21

  Anna Peeters dies leaving her daughter Els as heir. Els is 17 years and 6 months old.

  After deducting funeral costs and Anna’s debts, the value of the estate is 30,000 euros.

  Els is entitled to the following exemptions:

  • a tax-free sum of 15,000 euros as a result of the common tax-free allowance
  • an additional tax-free sum of 2,500 euros x 3 (= full years until she is 21) = 7,500 euros.

  That is a total amount of 22,500 euros tax-free.

  The inheritance tax payable by Els is calculated as 7,500 euros (30,000 – 22,500 euros).

  Therefore, she must pay 225 euros of inheritance tax (7,500 euros x 3 %).

• Heirs with at least three children under the age of 21: inheritance tax reduction

  Heirs with at least three living children under the age of 21 at the time of the deceased person's death receive a 2 % reduction in inheritance tax for each of those children, up to a maximum of 62 euros per child.

  The deceased person's partner receives a 4 % reduction for each child under 21, up to a maximum of 124 euros per child.

• Property that is included in the estate of another deceased person within a year: 50 % inheritance tax reduction

  If the inherited property is included in the estate of one or more other deceased persons within a year of the deceased person’s death, the inheritance tax due on it is halved.

  However, the amount of the reduction must not exceed the inheritance tax levied on the previous estate.

• Brothers, sisters, aunts, uncles, nephews, nieces and other persons: inheritance tax exemption for small estates

  If the estate is worth less than 1,250 euros, brothers, sisters, uncles, aunts, nephews, nieces or other heirs do not have to pay inheritance tax on their net share.

• Testamentary gifts to authorities: inheritance tax exemptions and reductions

  There is an exemption from inheritance tax for legacies (testamentary gifts) to:

  • the Brussels Capital Region;
  • the Brussels agglomeration;
  • the Flemish, French and Common Community Commissions;
  • the French, Flemish and German-Speaking Communities and the Flemish and Walloon Regions;
  • legal entities governed by public law that are treated in the same way as these entities and were established under, and are subject to, the laws of another Member State of the European Economic Area;
  • a Member State of the European Economic Area;
  • the public institutions of one of these entities.

  The inheritance tax is reduced to 7 % for legacies to:

  • municipalities of the Brussels Capital Region and their public institutions;
  • companies recognised by the Brusselse Gewestelijke Huisvestingsmaatschappij | Société du Logement de la Région de Bruxelles-Capital [Brussels Regional Housing Advisory Company];
  • the Woningfonds van het Brussels Hoofdstedelijk Gewest | Fonds du Logement de la Région de Bruxelles-Capitale [Brussels Regional Housing Fund] a cooperative society with limited liability;
  • inter-communal associations of the Brussels Capital Region;
  • public-interest foundations;
  • not-for-profit organisations and other non-profit-making legal entities that have obtained the Federal recognition referred to in Article 145³³ of the Income Tax Code 1992 on the date of the deceased person's death or in the year following the death.

  The inheritance tax is reduced to 25 % for legacies to:

  • national and international not-for-profit organisations;
  • sickness insurance funds or their national federations;
  • professional associations;
  • private foundations.

• Family businesses and companies: reduced rates

  The following reduced inheritance tax rate can be applied to family businesses and companies:

  • 3 % for married couples, cohabiting partners and lineal relatives;
  • 7 % for other persons.

  Type of property

  Family businesses

  The reduced rate applies to the net value of the full ownership, bare ownership or usufruct of the assets invested professionally in a family business by the deceased person or his or her partners.

  Please note: the reduction does not apply to immovable property that is primarily for residential use.

  Family companies

  The reduced rate applies to the net value of the full ownership, bare ownership or usufruct of shares in a family company with its effective centre of management in one of the Member States of the European Economic Area, on condition that, at the time of the deceased person’s death:

  • at least 50 % of the company’s shares were fully owned by the deceased person and his or her family,
  • or at least 30 % of the company's shares were fully owned by the deceased person and his or her family if they meet the following conditions:
    • that, together with one other shareholder and his or her family, they are full owners of at least 70 % of the company’s shares,
    • or that, together with two other shareholders and their families, they are full owners of at least 90 % of the company's shares.
    • Shares of legal entities cannot be combined with the deceased person’s shares.

  The company must be engaged in a genuine economic activity.

  The deceased person’s family or the shareholders include:

  • the partner of the deceased person or shareholder;
  • the lineal relatives of the deceased person or shareholder and their partners;
  • the collateral relatives of the deceased person or shareholder up to the second degree and their partners;
  • the children of brothers and sisters of the deceased person or shareholder.

  Conditions for retaining the reduction

  Family businesses

  The reduced rate is retained only if, for at least three continuous years from the date of the deceased person's death:

  • the economic activity of the family business continues without interruption;
  • the immovable property transferred, to which the reduction was applied, also continues to be used for the purposes of the business.

  Family companies

  The reduced rate is retained only if, for at least three continuous years from the date of the deceased person's death, all of the following conditions are met.

  • Activities: The family company continues to operate without interruption.
  • Annual financial statements: Annual financial statements or consolidated annual financial statements are prepared for each of the three years and, where appropriate, published in accordance with the accounting legislation of the Member State in which the company has its registered office at the time of the deceased person's death. The annual financial statements are used for the income tax declaration.
  • Capital: The capital does not fall as a result of distributions or repayments.
  • Effective centre of management: The company's effective centre of management is not transferred to a state outside the European Economic Area.

  Application

  Attach a certificate from the Brussels Capital Region, confirming that the conditions have been met, to the declaration of estate.

  By the 500th day after the date of death, send the office that dealt with the estate a certificate from the Brussels Capital Region confirming that the conditions were met for the first 365 days after the date of death.

  By the 865th day after the date of death, send the office that dealt with the estate a certificate from the Brussels Capital Region confirming that the conditions were met from the 366th to the 730th day after the date of death.